ICICI Pru Life gets GST demand notice for ₹492 cr

ICICI Precautionary LifeOn Monday, it said it had received a GST application notice of Rs 492.06 crore from the tax authorities.

It is an industry-wide issue input tax credit The Company believes that it has benefited from the eligible Goods and Services Tax (GST) credit in accordance with the provisions of the Central Goods and Services Tax (GST).Goods and services tax) Act, 2017, and other applicable laws, ICICI Pru said in a regulatory filing.

The late evening filing said the insurance company had received a Demand-Cause Notice (SCN) from the Directorate General of Goods and Services Tax Intelligence (DGGI), asking the company to show a reason for paying tax of Rs 492.06 crore, relating to the period in July. 2017 to July 2022, should not be ordered.

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She said the company will take appropriate steps in a timely manner to respond to SCN and challenge the matter.

“During the investigation, the company deposited Rs 190 crore, without accepting any responsibility in this regard,” it said.

The filing was made in April this year. In the last financial year, the Directorate General of Customs initiated a GST investigation into some expenses for which the company claimed its GST credit.

In September last year, the Mumbai unit of DGGI said the ITC worth ₹824 crore was availed by 16 insurers on The basis of fraudulent invoices. Of this, the insurers voluntarily paid out Rs 217 crore after the DGGI investigation.

DGGI investigations revealed that these insurers were already paying commissions in excess of IRDAI’s allowable limit to their corporate agents in the guise of expenses related to marketing and brand activation.